There is substantial evidence that the increased consumption of fat by dairy cattle can result in an increase in the number ovarian follicles, and the number and size of corpora lutea; it also stimulates post-partum ovarian activity and improve pregnancy rate. Increased dietary lipid also increases plasma cholesterol and progesterone, and the supply of lipoproteins which play significant roles in regulating ovarian steroidogenesis (Willimas, 1996). In contrast to cattle, there are few observations on the effects of dietary lipid on reproductive function in sheep. Intravascular infusion of lipid into ewes stimulated progesterone and prostaglandin synthesis (Burke et al., 1996), and dietary supplementation of calcium soaps of fatty acids enhanced luteal function (Kuran et al., 1999). Calcium soaps of fatty acids have been manufactured in Iran in recent years and sold under the trade name of Megalac. The aim of the present experiment was to study the effects of this protected fat on follicular number and luteal activity in two fat-tailed sheep breeds.